Jose Ruiz manages a car dealer’s service department. His department is organized as a cost center. Costs for a recent quarter are shown below. List the costs that would appear on a responsibility accounting report for the service department. Cost of parts . $22,400 Mechanics’ wages . 14,300 Manager’s salary 8,000 Building depreciation (allocated) 4,500 Shop supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200 Utilities (allocated) . 800 Administrative costs (allocated) 2,200

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Jose Ruiz manages a car dealer’s service department. His department is organized as a cost center. Costs
for a recent quarter are shown below. List the costs that would appear on a responsibility accounting report
for the service department.
Cost of parts . $22,400
Mechanics’ wages . 14,300
Manager’s salary 8,000
Building depreciation (allocated) 4,500
Shop supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200
Utilities (allocated) . 800
Administrative costs (allocated) 2,200

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